Police have visited the office of the South Korean exchange for the third time in September. The police are interested in the BXA token fraud case.
South Korean authorities have seized shares in Bithumb Holdings owned by Bithumb Korea CEO Kim Bin Gen. According to local media reports, this was the purpose of the police visit to Bithumb’s office in Seoul today.
The arrest was authorized by the Seoul Central District Court. Earlier, Ben Gen tried unsuccessfully to buy out Bithumb and demanded to confiscate part of his securities from the chairman of Bithumb Holdings Lee Jong Hoon.
Today’s police visit to the Bithumb office was the third in September. On September 2, police ransacked Bithumb Korea’s offices and a few days later visited the headquarters of its parent holding.
The interest of the police is connected with the case of fraud and the withdrawal of assets abroad. We will remind, the executive director of Bithumb Holdings Lee Jong Hoon is accused of investment fraud using Bithumb’s own token – BXA.
The BXA tokens are backed by the Blockchain Exchange Alliance consortium, formed during the merger of the Singapore subsidiary Bithumb with the investment firm Blockchain Industries in early 2019. The South Korean exchange was planning to gain public status using a reverse takeover procedure – shares of Blockchain Industries were already traded on the American over-the-counter (OTC) market.
More than 300 investors have become participants in the BXA token sale. However, the plan failed and BXA tokens depreciated. Investors who expected Bithumb to enter the stock market lost about $ 25 million.
Recall, despite the problems of its chairman with the law and the unsuccessful experience of listing on the American stock market, Bithumb has not abandoned plans to obtain public status. In late June, it became known that Bithumb Korea approached Samsung Securities with a request to act as an underwriter for an IPO on the South Korean market.